The results for the regression are as follows CoefficientsStandard ErrorT stat Intercept14.630.522627.995 financial crisis13.711.061012.922 COVID-19 crisis15.711.66439.439 transition5.401.18354.563 In estimating the regression found above, you are concerned that the t-statistics may be inflated because of serial correlation. You compute the DW statistic at 0.724 for the regressionBased on the DW, what can you say about serial correlation between the residuals? Are they positively or negatively correlated? Or not correlated?Compute the sample correlation between the regression residuals from one period and those from the previous period.Perform a statistical test at the level to see if there is serial correlation. If you are using the table in the textbook, assume that the critical values of the DW statistic for 214 observations are about 0.11 higher than the critical values for 100 observations.

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MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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The results for the regression are as follows

	Coefficients	Standard Error	T stat
Intercept	14.63	0.5226	27.995
financial crisis	13.71	1.0610	12.922
COVID-19 crisis	15.71	1.6643	9.439
transition	5.40	1.1835	4.563

In estimating the regression found above, you are concerned that the t-statistics may be inflated because of serial correlation. You compute the DW statistic at 0.724 for the regression

Based on the DW, what can you say about serial correlation between the residuals? Are they positively or negatively correlated? Or not correlated?
Compute the sample correlation between the regression residuals from one period and those from the previous period.
Perform a statistical test at the level to see if there is serial correlation. If you are using the table in the textbook, assume that the critical values of the DW statistic for 214 observations are about 0.11 higher than the critical values for 100 observations.

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